The biggest German power company, E.ON, early Thursday announced the sale of its US subsidiary for about 7.6 billion dollars (5.75 billion euros) to American energy supplier PPL in order to boost its cash reserves. In a statement, the group said it considered the price “very attractive”, adding that the transaction was conditional on approval by the US competition authorities.
E.ON US includes two electricity and gas suppliers in the southern state of Kentucky, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), which employ a total of more than 3,000 people and supply more than 1.2 million clients.
The sale of one of its smallest subsidiaries will enable E.ON, in debt to the tune of more than 45 billion euros, to achieve its objective of making savings of 10 billion euros by the end of 2010.
PPL, based in Allentown, Pennsylvania, controls 12,000 mw of capacity in the United States, sells energy on the main American markets and supplies electricity to four million customers in the US and Britain.
Source: E.ON Press Release
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